Oak Ridge National Laboratory (ORNL)’s new initiative aligns with the U.S. federal strategy to strengthen AI infrastructure and grid reliability.
As power consumption by AI data centers accelerates across the United States, ORNL scientists have established a new research institute focused on managing the energy, security, and operational pressures associated with that growth.
The institute this week announced the creation of the Next Generation Data Center Institute (NGDCI). This is an internal program designed to coordinate research in high performance computing, energy systems, cybersecurity, and grid modeling.
The move comes amid growing concerns that expanding AI infrastructure could strain the power grid and complicate long-term energy planning.
ORNL Director Steven Streifer explains:
“The electricity required to power AI data centers is expected to double or triple over the next decade, straining an infrastructure already under pressure. ORNL is uniquely positioned to meet this challenge.”
Increased power demand from AI data centers
AI data centers already account for more than 4% of total electricity consumption in the United States. Analysts at the Electric Power Research Institute estimate that this number could rise to 17% by 2030 if current expansion trends continue.
Much of the growth is being driven by AI-specific computing tasks. Training large machine learning models can require hundreds of megawatt-hours of power, and large-scale deployments are even more demanding.
The North American Electric Reliability Corporation warned that rapid demand growth from AI systems and industrial electrification could increase risks to grid stability in some regions.
At the same time, investment in digital infrastructure continues to increase. Consultancy McKinsey & Company predicts that global data center spending could reach $7 trillion by 2030, with the United States accounting for more than 40% of that total.
Federation Strategy and Genesis Mission
The institute’s launch coincides with a broader federal effort led by DOE under an initiative known as the Genesis Mission.
The program aims to more closely connect the nation’s advanced computing assets with the energy systems that power them, with the goal of significantly increasing research and development output over the next decade.
Oak Ridge researchers say the new lab will support these objectives by examining ways to power, cool and protect AI infrastructure without compromising reliability.
The institute is preparing to deploy two next-generation AI supercomputers, Discovery and Lux, and will focus in part on ensuring such systems operate efficiently within broader energy constraints.
From grid strain to grid support
One of the key challenges is that existing power networks are not designed to absorb the scale and concentration of loads that come with modern data centers. If demand continues to grow at its current pace, traditional planning approaches may prove inadequate.
The lab claims that smarter integration could change the equation. By coordinating power delivery, thermal management, workload scheduling, and AI-powered predictions, AI data centers could ultimately help balance supply and demand rather than simply increasing system stress.
To support this research, the Institute will utilize modeling tools developed through Oak Ridge’s Modeling Energy Growth Associated with Data Centers (MEGA-DC) project.
The platform assesses infrastructure costs, economic impacts, and upgrade paths for utilities, state regulators, and developers evaluating new data center projects.
Six core research areas
NGDCI will focus on six technology priorities:
Advanced thermal management significantly reduces the energy and water required for cooling, which can represent up to 60% of a facility’s total consumption. New power system architectures aim to reduce transmission losses and improve efficiency between power generation sources and server racks. Grid integration strategies that explore how data centers can contribute to resilience, rather than undermine it. An autonomous operations and load management system that optimizes computing workloads along with energy availability. Cybersecurity measures, including quantum-proof communications, to protect both physical and digital infrastructure. Integrated systems modeling to assess the long-term impact of AI infrastructure on energy markets, employment, materials demand, and U.S. competitiveness.
As AI data centers continue to expand, policymakers and utilities face difficult trade-offs between economic growth and grid stability.
Oak Ridge’s new lab signals that the national lab is positioning itself at the center of that conversation, focused on how to align advanced computing ambitions with the realities of the energy systems that support them.
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